“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Karl Peidl - Accredited Loan Consultant

Karl Peidl - Accredited Loan Consultant

Blog_tag

Contingencies in real estate contracts

09-21-09
Karl Peidl - Accredited Loan Consultant

Contingencies in real estate contracts

In real estate contracts the contingency is a common element. Contingencies are clauses in a contract that give either the buyer or seller a way to get out of the contract if certain conditions or timelines aren't met. A commonly used example is that of a buyer making an offer on a new home before selling his existing home. The buyer needs to sell his present home before being able to get financing on the new one. So he makes his offer contingent upon the sale of his existing home. There will always be a time period associated with such a contingency. If the buyer is able to get his present home sold within that time period, the deal can go forward. But if he fails to sell within the specified time period, the seller has the option of getting out of the deal. In most cases, sellers won't accept this kind of contingency, because they will most likely feel that they can find another buyer capable of closing the deal without needing to sell another home first. But new home builders are often willing to accept an offer contingent upon the sale of an existing home.

right

Every contract can be unique. The possibilities for contingencies are virtually endless. Some of the more commonly used contingencies would include:

Financing. Contingencies that depend on the buyer being able to obtain financing are very common.


Home Inspections. Probably the most common type of contingency is the "contingent upon satisfactory completion of inspection". There are any number of specific types of inspection for which a contingency might be included in a contract. Some of the more common would include inspection by a qualified home inspector for hidden defects, pest inspections, water and sewage system inspections, inspections dealing with the presence of radon or mold, etc.


Appraisal. It's not unusual for a buyer to have a contingency that allows for a formal appraised value at or above purchase price. Since lenders will nearly always want an appraisal performed too, sellers usually don't have a problem with this.

Remember, just like everything else in real estate contracts, contingencies are negotiable. Always take care before signing that you are comfortable with all contingencies included in your contract. Likewise, take time to think about what contingencies you might like to have added.

Quick Tips for Getting Started on Your Home Purchase

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

Accredited Loan Consultant

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

4 Comments
Blog_tag

ARM Indexes: A 10-Year Comparison

09-19-09
Karl Peidl - Accredited Loan Consultant

ARM Indexes: A 10-Year Comparison

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com


Licensed Mortgage Banker, NJ Department of Banking and Insurance. Licensed Mortgage Banker NYS Banking Department. Licensed by the PA Department of Banking and pursuant to the Secondary Mortgage Loan Act. Not an offer to enter an interest rate lock-in agreement under MN law. MA Licensed Lender #MC3208. GA Residential Mortgage License #14511. Corporation also operates as Superior Home Mortgage Corp. and services CO, CT, DE, FL, IN, MD, MI, MN, NC, SC, TN, VA, WI.





Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

© Copyright 2009. All About News, Inc.

0 Comments
Blog_tag

The Home Buyer Checklist

09-18-09
Karl Peidl - Accredited Loan Consultant

The Home Buyer Checklist identifies some of the important factors to consider when choosing a home. In addition to an affordable sales price, you will also want to be sure that the neighborhood and house meet the needs of your family.

Take this checklist along when you go shopping for your house. It will help you evaluate the neighborhoods and assess the availability and condition of various features of up to three homes in a side-by-side comparison.

Home Buyer checklist

1

2

3

Property Address

.

.

.

Asking Price

$

$

$

Real Estate Taxes

$

$

$

The Neighborhood

Near Work

.

.

.

Near Schools

.

.

.

Near Shopping

.

.

.

Near Expressways

.

.

.

Near Public Transportation

.

.

.

Near Doctors / Dentists

.

.

.

Near Churches

.

.

.

Garbage Collection

.

.

.

Street Lights

.

.

.

Sidewalks

.

.

.

Streets / Alleys Well Maintained

.

.

.

Traffic Volume

.

.

.

Parks

.

.

.

Neighbor's Property Well Maintained

.

.

.

All Utilities Installed

.

.

.

Neighborhood / Restrictions

.

.

.

Near Trains / Airports

.

.

.

Area Zoned Residential

.

.

.

Near Industry

.

.

.

Proposed Special Assessments

.

.

.

Environment Concerns / Influences

.

.

.

The House

Age of House

.

.

.

No. of Stories

.

.

.

Wood Frame

.

.

.

Brick Frame

.

.

.

Wood & Brick Frame

.

.

.

Aluminum Siding

.

.

.

Roof Condition

.

.

.

Foundation Condition

.

.

.

Overall Exterior Condition

.

.

.

Garage Size

.

.

.

No. of Bathrooms

.

.

.

No. of Closets

.

.

.

No. of Bedrooms

.

.

.

Oil Heat

.

.

.

Gas Heat

.

.

.

Electric Heat

.

.

.

Hot Water Heat

.

.

.

Insulation

.

.

.

Central Air Conditioning

.

.

.

Energy-Conservation Features

.

.

.

Age of Heating System

.

.

.

Age of Water Heater

.

.

.

Capacity of Water Heater

.

.

.

Age of Electrical Wiring

.

.

.

Plumbing Condition

.

.

.

Estimated Water Bill

$

$

$

Estimated Heating Bill

$

$

$

Estimated Electric Bill

$

$

$

Living Room

.

.

.

Fireplace

.

.

.

Separate Dining Room

.

.

.

Family Room

.

.

.

Drapes - No. of Rooms

.

.

.

Carpeting - No. of Rooms

.

.

.

Kitchen Eating Area

.

.

.

Refrigerator

.

.

.

Stove / Oven (Gas / Electric)

.

.

.

Garbage Disposal

.

.

.

Dishwasher

.

.

.

Broken Windows

.

.

.

Storm Windows / Screens

.

.

.

Washer / Dryer Outlets

.

.

.

Laundry Space

.

.

.

Finished Basement

.

.

.

Attic

.

.

.

Sump Pump / Drainage

.

.

.

Connected to Sewer System

.

.

.

Patio

.

.

.

Backyard Fence

.

.

.

Landscaping

.

.

.

Property Boundaries

.

.

.

Security (dead bolts, detectors)

.

.

.

Building Code

.

.

.

Compliance

.

.

.

Ability to Expand / Enlarge House

.

.

.

First-Time Home Buyers: 12 Things You Must Do

Karl Peidl

Accredited Mortgage Advocate

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.

6 Comments
Blog_tag

Mortgage Rate Update

09-17-09
Karl Peidl - Accredited Loan Consultant

Mortgage Rate Update &
Choosing a Fixed Rate Loan

Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.

A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower's long-term needs.

It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.

Mortgage Interest Rates*

Rates as of Thursday, 17th September, 2009:

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

5.125%

5.131%

$5.44

5.375%

5.465%

$5.60

15-Yr. fixed

4.500%

4.723%

$7.65

4.875%

5.026%

$7.84

7-Yr. fixed ARM

4.375%

4.627%

$4.99

6.500%

6.596%

$6.32

5-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

3-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

5-Yr. Interest Only

4.000%

4.124%

$3.33

5.375%

5.465%

$4.48

FHA 30-year fixed

5.000%

5.131%

$5.37

5.250%

5.339%

$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

Accredited Loan Consultant

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.





© Copyright 2009. All About News, Inc.

0 Comments
Blog_tag

Bi-Weekly Mortgage Payment Programs: The Truth Revealed

09-16-09
Karl Peidl - Accredited Loan Consultant

Bi-Weekly Mortgage Payment Programs: The Truth Revealed

A Bi-Weekly Mortgage is a mortgage where you make "half payments" every two weeks, rather than one payment per month. This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage. This is done by by taking your normal monthly payment and dividing it by two. Since you would pay 26 bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.

If you search for "bi-weekly mortgage" with an Internet search engine, you will be overwhelmed by the number of companies offering "Bi-weekly Mortgage Reduction Services" or "Bi-weekly Savings Programs." Beware, you are entering dangerous waters.

Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs

These "Reduction Services" and "Savings Programs" are charging you fees to "make a bi-weekly mortgage payment" for you. The enticement is that they will save you an impressive amount of money on your mortgage and reduce the number of years you pay on your mortgage.

The enticement is that they will make bi-weekly mortgage payments for you.

The real story is that they are not actually making bi-weekly payments on your mortgage. They are making bi-weekly deductions from your bank account. These funds are placed into an account from which your monthly mortgage payment is made (which only takes 24 deductions - but during the course of a year 26 deductions will be made from your account). With the extra 2 deductions, the "Service" makes an additional mortgage payment. In other words rather than making 12 mortgage payments, 13 payments are made.

The enticement is that they are providing a special service to you that would either not be possible for you to get on your own or that you won't have the time or discipline to make it happen.

The real story is that you can easily make an additional mortgage payment each year. An easy way to do this is to have your mortgage payment automatically deducted from your account each month with an additional 1/12 payment to be applied to the principal amount. At the end of 12 months, you will have made an additional payment. And you won't have to pay any fees to a "Service".

To help you see how much you can save by doing this yourself, you can use this bi-weekly payment calculator.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@supmort.com

http://www.karlpeidl.com/Home

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.


4 Comments